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Understanding and Preventing Check Fraud

Check fraud encompasses various deceptive practices involving bad checks, stolen and altered checks, or forged checks. To safeguard yourself, it’s crucial to monitor your checking account diligently and stay vigilant for any signs of check fraud. If you need assistance with any mortgage-related needs, call O1ne Mortgage at 213-732-3074.

How Does Check Fraud Work?

Check fraud can manifest in several ways. Sometimes, it involves knowingly writing a check for more than the available balance. In other instances, criminals forge or alter checks to steal money. Understanding these methods can help you protect yourself.

Types of Check Fraud

Here are some common types of check fraud:

• Paper Hanging: Writing a bad check and exploiting the time it takes for checks to clear.
• Check Kiting: Writing bad checks across multiple accounts to temporarily cover insufficient funds.
• Check Washing: Stealing checks and using chemicals to alter the amount and payee.
• Check Cooking: Scanning and digitally altering checks to create counterfeit versions.
• Check Theft and Forgery: Stealing or printing blank checks and forging signatures.

How to Avoid Check Fraud

To avoid check fraud, never knowingly write a bad check. Additionally, protect yourself from scammers by following these tips:

• Use alternative payment methods like credit or debit cards, or peer-to-peer payment apps.
• Write checks with a black gel pen to make it harder for fraudsters to wash the ink.
• Mail checks directly from the post office or a secure mailbox.
• Check your mail daily and use USPS Informed Delivery to monitor your mail.
• Request a mail hold from USPS if you’re away for an extended period.

Protect Yourself From Fraudulent Checks

Be cautious of people trying to pay you with fraudulent checks, especially in overpayment or employment scams. If someone sends you a check for more than the intended amount and asks you to return the excess, it’s likely a scam. Even if the check initially clears, it may bounce later, leaving you out of pocket.

What to Do if You’re the Victim of Check Fraud

If you fall victim to check fraud, your next steps depend on the type of fraud:

• Stolen and Altered Checks: Contact your bank and file a police report. Your bank may reimburse you, but it could take time.
• Fraudulent Checks: Report the fraud to the organization you used to send money and see if you can reverse the transaction. If you sent cash, gift cards, cryptocurrency, or a wire transfer, recovery might be difficult.

Report check fraud to the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center to help track fraud groups and protect others.

Monitor Your Credit and Identity

Check fraud might not directly impact your credit, but criminals could use your personal information for identity theft. Use a credit monitoring tool to get alerts if someone applies for credit in your name. Identity protection programs can also help you recover your identity if it’s stolen.

For any mortgage-related needs, don’t hesitate to call O1ne Mortgage at 213-732-3074. We’re here to help!

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